Package delivery service company UPS has reached an agreement in principle with Amazon to cut the volume of packages it delivers for the online retailer by more than 50 percent by the second half of 2026.
The move by UPS is part of the company’s “better not bigger strategy,” which UPS is hoping will pay off in the years ahead, according to Emma Hurt of The Atlanta Journal-Constitution, as reported in The Spokesman-Review.
The UPS is also now insourcing 100 percent of its SurePost product, a smaller package delivery service that previously included partnering with the post office. UPS will now deliver all of its own SurePost packages.
The company is also launching multi-year “efficiency reimagined” initiatives to drive approximately $1 billion in savings through a redesign.
“We are making business and operational changes that, along with the foundational changes we’ve already made, will put us further down the path to becoming a more profitable, agile, and differentiated UPS that is growing in the best parts of the market,” said Carol Tomé, UPS chief executive officer.
UPS has announced a fourth-quarter 2024 consolidated revenue of $25.3 billion, a 1.5 percent increase from the fourth quarter of 2023.
Its consolidated operating profit was $2.9 billion, up 18.1 percent compared to the fourth quarter of 2023, according to a UPS release.
Find out more at UPS.
